Global commodity markets see rise in sugar and pulp prices

Global sugar prices have risen, driven by signs of stronger physical demand and potential supply deficits. In New York, raw sugar March contracts increased by 1.77% to 18.97 cents per pound, while white sugar in London rose to $507.30 per tonne. Analysts at Covrig Analytics noted that lower delivery estimates for the October contract suggest firmer demand than previously projected.

Long-term outlooks suggest significant supply challenges. The International Sugar Organization projects a global deficit of 200,000 tonnes for 2026/27. In Thailand, the second-largest exporter, production is estimated to drop by 17% in the 2026/27 cycle. Additionally, El Niño weather patterns pose risks to production in Brazil, India, and Thailand.

Simultaneously, the global pulp market is showing signs of recovery. Following a period of high inventories and price adjustments, demand is stabilizing due to replenished purchasing in China and reduced stock levels. In September, short-fiber pulp spot prices in China rose by 1% weekly, supported by declining inventories at major ports like Qingdao and Changshu.